The repeated use of wooden pallet has contributed to energy conservation and emission reduction and closely follows logistics. In particular, the standardization, unitization, modularization, informationization, sharing and consistent operation of transportation packaging systems have become an inevitable trend and integration. Packaging logistics and the implementation of integrated packaging solutions have become a real need, and achieving circular sharing of transportation packaging systems is one of the most realistic and effective means of energy saving and emission reduction.
First. China’s wooden pallet rental market trends, foreign comparison
The ultimate use of wooden pallets is strip board transportation (strip board transportation eliminates multiple downturns during the goods circulation process, which saves cargo handling costs and transportation time, reduces the risk of damage, speeds up vehicle turnover, and improves storage utilization). Board transportation has just started in the past year or two. Currently, there are about 800-1.1 billion pallets in China (different statistical calibers, and cross-validated durable pallets should have 400-500 million). More than half of them are used in the enterprise (no recycling ), Resulting in a large number of idle, there are many disposable trays in China’s strip transportation (to avoid the problem of difficult transfer of property rights). At the same time, leases account for 16% of the 2 billion pallets in the United States, 25% of the 600 million pallets in Europe, and only 1.36% in China. In particular, e-commerce and retail), due to the high idle rate (usually 30%) due to the purchase of pallets, the efficiency and cost of leasing are better, and open dynamic leasing (based on strip transportation) is the trend.
At the same time, the concentration of pallet leasing is relatively high. For example, Chin Po holds 80% of the US leasing market and 1/6 of Europe. Because dynamic leasing involves multiple areas of return and return, multi-layer customers in the industry chain, it has a network effect on experience.
Second, the main problems faced by China to implement the dynamic lease of wooden pallets
In our view, the dynamic leasing of wooden pallets in China faces the following problems:
1. The non-standardized status of Chinese wooden pallets is relatively serious (the standardization rate of pallets in Australia is 90%, the standardization rate of pallets in Japan and South Korea is more than 40%, and China is currently only 25.5%), and this is a key factor affecting pallet leasing. Standardization is not only the pallet specification standard, but also whether the order method is full or half, the board height, whether there is a priority channel for the receiving process, who is responsible for unloading the forklift.
At present, China’s pallet specification standards have been established (the output in 2016 was 280 million pieces, 35% conforming to the unified standard), and the market size of about 10 billion (including maintenance income) can still have an annual growth of 10-20% (China in 2010 There are only more than 100 million pallets, which have doubled in recent years. According to the saturation of developed countries, China should have 1.3 billion. According to the fixed loss update, annual shipments are at least 10% of the total.) However, landing requires third-party operations. It is driven by enterprises. For example, the European pallet standard is developed by the EPAL Association, and the dynamic rental pallets circulating in the market also need to be certified and labeled. Recyclers and fixed partners sign agreements to recover excess pallets and sell them. EPAL relies on certification and second-hand Charging fees for whiteboard transactions is a more traditional platform model. The core competences are output standards and notarization.
2. Benefit distribution. The most suitable customers for pallet leasing are fast-moving consumer supply chains (including suppliers, transit DCs, and retail terminals) because of closed loops and good recycling. In addition, fast-moving consumer goods have fast turnover and low value. They have high requirements for pallet operation efficiency. Gao Yue is suitable for strip transportation. In the non-dynamic leasing mode, the pallet fee is generally paid by the supplier. After the dynamic operation, the retailer needs to pick up, sort, and store the car. The core is to bear the return freight and loss compensation. How to make the return network denser (while The investment should not be too large), reducing the loss rate is the key issue.
3. The actual cost of leasing. It should be noted that dynamic leasing = short-term leasing (so the rent is lower). In fact, the dynamic leasing trip depends on the life cycle of the product. In fact, the overall lease amount of the enterprise is more, and the cycle does not matter. Both static and dynamic prices are calculated on a daily basis, and there will be no obvious price difference, so it is difficult to obtain customers.
Generally speaking, the fast-moving consumer goods industry will be an easy-to-cut direct market. There are about 200 million wooden pallets used in China (there should be 400-400 million in the long run). With reference to Australia ’s 65% FMCG rental penetration rate, There is a market space of around 100 million leased pallets. For them, second-hand pallets are only 20 yuan cheaper, due to the lack of power to shift the price to lease; the use of pallets is complicated to measure, and the embedded electronics will increase the cost. However, labor costs, oil prices, road and bridge fees, and overload penalties increase. Both are beneficial to strip transportation. Now major customers have taken the initiative to request strip transportation. The problem that needs to be solved is the likelihood that the headquarters is willing to bring it, but because the downstream needs to pay, the willingness has yet to be verified. In addition, the dynamic model requires additional charges, such as suppliers paying 45-day delayed transfer rents for retailers (as in Europe). For FMCG companies, pallets also take up space, which indirectly reduces loading rates.
4. Loss and freight issues. The maintenance loss rate in Europe is 25% (based on the number of returning plates), China’s static mode maintenance rate is 25-30%, and Japan’s maintenance rate is slightly lower (because of a high level of operation). How to reduce losses and reduce maintenance costs is critical. In addition, the freight will even exceed the rental price. For example, the fast-moving consumer goods have a 1-month turnover cycle. The freight costs 40 yuan a year, but the rent is only 30-50 yuan. How to use a lighter model to make the outlets dense enough to use a lower price. Cost recovery is the core of reducing freight.
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